Shareholders at KCB Group will pocket a total of Sh13 billion in
dividends after the board announced an interim Sh4 per share, after impressive
financial results for the first six months of the year.
The board of directors has recommended an interim dividend of
Sh2 per share for the 2025 period and a further special dividend of Sh2 per
share in relation to the sale of National Bank of Kenya
This will be the largest interim payment and the first-ever special
dividend in the bank’s history.
Speaking during an investor briefing in Nairobi, KCB Group
managing director and CEO Paul Russo said that profit after tax grew eight per
cent from Sh29.9 billion to Sh32.3 billion as all business franchises posted
higher earnings, riding on customer-focused initiatives.
He revealed that the strong financial results in the first half
of 2025 were motivated driven by growth in earning assets, amid a difficult
operating environment.
“The
business across markets remains resilient despite the tough operating environment
in key markets like Kenya. Despite this, we have placed our customers at the
fore, to ensure we meet their needs on time,’’ Russo said.
Data released on Wednesday shows subsidiaries outside KCB Bank
Kenya continued to turn in stronger performance, with their profit before tax
making up 33.4 per cent of the overall Group earnings, and 31.4 Per cent of the
balance sheet.
Gross profits (PBT) contribution from non-banking entities—KCB
Investment Bank, KCB Asset Management and KCB Bancassurance Intermediary
Limited was up to 2.1 from 1.8 per cent a similar period last year.
Total assets remained stable at Sh1.97 trillion, despite the
sale of NBK in the second quarter of the year, demonstrating the Group’s
capacity and capability to support its customers across the seven countries
where KCB operates in.
Gross revenue grew 4.3 per cent, boosted by higher net interest
income that rose to Sh69.1 billion, from 61.3 billion.
Interest income from customer loans increased on the back of improved
yields and loan volumes in the period.
The cost of funds remained at par with previous period and is
expected to decline during the year as interest rates continued trending
downwards across most markets.
The Group’s digital channels continued to offer unmatched
convenience to customers, with 99 per cent of transactions by number conducted
through non-branch channels.
This helped ring-fence the Group’s non-funded income, which stood at Sh29.5 billion, despite a notable impact from reduced foreign exchange earnings. The share of NFI stood at 29.9 per cent of the total revenue.
To further boost digital footprint, KCB has rolled out a new
unified mobile App available to all our customers in Kenya from August 11,
2025.
The new platform introduces breakthrough self-onboarding
capabilities, allowing customers to register and begin banking instantly,
anytime, anywhere. It is powered by advanced artificial intelligence, data
analytics and a mini-APP ecosystem.
The lender maintained its prudent cost management approach, with
costs growing by 2.4 per cent driven by variable costs and investments for
future growth.
Total expenses closed the period at Sh45.4 billion, with the
cost-to-income ratio stable at 46 per cent.
Considering the challenging economic conditions in different
sectors across the markets, the Group provisions for expected credit losses
increased through judicious provisioning.
Non-Performing Loans (NPL) closed at 18.7 per cent from 19.2 per
cent in December 2024, while the stands on NPL stood at Sh221.1 billion.
In what gives the Group adequate headroom to better support
customers, the capital and liquidity buffers remained stable within regulatory
expectations and way above industry average.
Its core capital as a proportion of total risk-weighted assets
stood at 17 per cent against the statutory minimum of 10.5 per cent while the
total capital to risk-weighted assets ratio was at 19.7 per cent against a
regulatory minimum of 14.5 per cent.
The Group’s liquidity ratio was 47.2 per cent, compared to 47
per cent in H1 last year.
The strong financial fundamentals enabled the Group to deliver
stronger value to shareholders. Return on Equity (ROAE) stood at 22.2 per cent
while Return on Assets (ROA) of 3.3 per cent.
Total equity attributable to shareholders was up by 27.3 per
cent from Sh241 billion to Sh306.8 billion.
“Noting that we are operating in a regional environment that is prone to growing uncertainties and evolving dynamics, we continue to leverage our strengths and capabilities to deliver on our strategic goals,’’ KCB Group chairman, Joseph Kinyua said.
